ANTI-MONEY LAUNDERING LAW (AMLA) [R.A. 9160 or Anti-
Money Laundering Act of 2001 as amended by R.A. 9194
and R.A. 10168 or Terrorism Financing Prevention and
Suspension Act of 2012 and RA 10365 or An Act Further
Strengthening the Anti-Money Laundering Law]
Policy: The Philippines has a policy to protect bank account
integrity and prevent money laundering. The country vows to
cooperate in investigations and prosecutions of money
laundering activities across borders.
Definition of Money Laundering
Money laundering involves knowingly dealing with monetary
instruments or property that are proceeds of unlawful
activities.
This includes transactions, conversions, transfers,
concealment, or disguising the true nature of the funds. I t
also encompasses attempting, conspiring, aiding, abetting, or
failing to report suspicious transactions as required under
the AMLA.
Those involved can face criminal charges for these actions
under anti-money laundering laws.
Predicate Crimes of Money Laundering (34 Crimes)
The Revised Penal Code covers various crimes, including
kidnapping for ransom, drug trafficking, graft and corruption,
robbery, piracy, qualified theft, smuggling, terrorism, bribery,
forgery, trafficking in persons, carjacking, illegal possession of
firearms, illegal recruitment, intellectual property violations,
voyeurism, child pornography, child abuse, fraudulent
practices, and other offenses punishable under Philippine
laws and other countries' laws.
The code also addresses violations of specific acts such as the
Comprehensive Dangerous Drugs Act, Plunder Act, Electronic
Commerce Act, Forestry Code, Fisheries Code, Mining Act,
Wildlife Protection Act, Caves Protection Act, and Securities
Regulation Code.
These offenses carry penalties as prescribed by law to ensure
accountability and maintain law and order in society.
Types of Reportable Transactions to AMLC
Covered Transactions involve breaching quantitative
thresholds set by AMLA and must be reported to AMLC by
covered persons.
Suspicious Transactions, although not breaching thresholds,
must still be reported due to their suspicious nature.
Amount of Covered Transactions for Reporting to AMLC
The covered transactions under the Anti-Money Laundering
Act now include cash transactions exceeding P500,000,
P1,000,000 for jewelry, precious metals, and stones dealers,
and single casino cash transactions over P5,000,000.
Suspicious Transactions that shall also be reported to AMLC
These are the red flags for suspicious transactions: lack of
legal or trade justification, unidentified client, mismatch
between amount and client's financial capacity, suspicion of
structuring to avoid reporting, deviation from client profile,
involvement in unlawful activities, or similarity to past
suspicious transactions.
These signs should prompt further investigation to ensure
compliance with anti-money laundering laws and
regulations.
Covered persons, natural or juridical, required to report to
AMLC covered transactions and suspicious transactions.
The Bangko Sentral ng Pilipinas regulates banks, non-banks,
quasi-banks, trust entities, foreign exchange dealers, and
other financial institutions.
The Insurance Commission oversees insurance companies,
pre-need companies, insurance agents, brokers, and mutual
benefit associations.
The Securities and Exchange Commission supervises
securities dealers, investment houses, mutual funds, and
entities dealing in financial derivatives.
These regulatory bodies ensure that financial i nstitutions in
the Philippines comply with laws and regulations.
Other Designated Non-Financial Business and Professionals
The content discusses the roles and responsibilities of Other
Designated Non-Financial Business and Professionals
(DNFBPs).
This includes jewelry dealers, dealers in precious metals and
stones, the Land Registration Authority, casinos, internet-
based casinos, ship-based casinos, company service
providers, and individuals providing services such as
managing client money and assets, organization of
contributions for companies, and buying and selling
businesses.
DNFBPs are required to adhere to regulations set by the
government, such as reporting transactions above certain
monetary thresholds.
They play a crucial role in preventing money laundering and
other illegal activities, ensuring transparency and
accountability in financial transactions.
The services provided by DNFBPs are essential for the
smooth functioning of the economy and business
enterprises.
Persons excluded to report covered transactions or
suspicious transactions to AMLC
Lawyers and certified public accountants must maintain
client confidentiality and protect the attorney-client or CPA-
client relationship when dealing with sensitive information
provided by their clients.
Jurisdictions over Money Laundering Cases
The Regional Trial Court has jurisdiction over money
laundering cases involving private individuals and public
officers not under the Sandiganbayan's jurisdiction.
The Sandiganbayan handles cases involving public officers
and private individuals in conspiracy with them.
Prosecution of Money Laundering Cases
Independent proceedings allow for separate prosecution of
money laundering and unlawful activity.
Elements of money laundering are distinct from the unlawful
activity, and knowledge can be proven through direct or
circumstantial evidence.
Perpetrators and details of unlawful activity do not need to
be proven beyond reasonable doubt for money laundering
charges.
